If we compare car insurance fraud to other types of fraud we find that according to the Insurance Research Council automobile insurance fraud added between $4.8 billion and $6.8 billion to auto claim payments in 2007. This staggering figure pales in comparison to insurance fraud across the U.S., which costs the industry over $30 billion per year.
There are significant dangers involved with those who commit car insurance fraud. If we compare car insurance fraud to medical insurance fraud, we find that the only real harm in medical cases is financial. The chances of someone being injured are far less in this type of fraud.
If we compare car insurance fraud to homeowner’s insurance fraud we find that there are significant dangers in both, especially when you consider the danger to life and property caused by arson. Incidentally, a large proportion of fraudulent claims involving automobiles involves arson as well.
Car insurance fraud that involves arson and staged accidents cause more issues than just financial damages. This type of fraud places people in danger of being injured. If you compare car insurance fraud to other types of insurance fraud, it will stand out as one that poses more dangers to the public than other types of insurance fraud.
